As we write this in January 2021, the 10-year interest rate is just 1.05%. How much would you have been prepared in January 2021 to pay for a strip that promises to pay $1,000 at the end of 10 years?
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- Suppose you want to buy a $453,806 home. You can put $90,000 down and can finance at 4.1% APR Monthly for 30 years, but can only afford to pay $1,149, for the first five years, and have offered to make a balloon payment of $100,000 at the end of thirty years (your 360th payment). How much will your remaining payments be? (Assume all payments will be made at the end of each month, and that negative amortization is permitted.)You make $10,000 deposit 1 year from now, $15,000 deposit 3 years from now and $20,000 deposit 5 years from now in real dollars. You plan to retire 30 years from now. What monthly income you will receive due to these deposits, in real dollars, over five years after the retirement? The first payment would be received at the end of the first month after the retirement and the last payment on the month ending the fifth year. The nominal rate is 8.5% and the inflation expectations are 3.2%.You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement?
- You make $10,000 deposit 1 year from now, $15,000 deposit 3 years from now and $20,000 deposit 5 years from now in real dollars. You plan to retire 30 years from now. What monthly income you will receive due to these deposits, in real dollars, over five years after the retirement? The first payment would be received at the end of the first month after the retirement and the last payment on the month ending the fifth year. The nominal rate is 8.5% and the inflation expectations are 3.2%. Please use excelYou plan on retiring in exactly 6 years and you would like to have a retirement fund balance of exactly $2,000,000 at that time. You are convinced that you can earn an APR (based on monthly compounding) of 5.1%. If you are making beginning-of-the-month payments into the account, how much does each one of the payments need to be in order to reach your target? To nearest $0.012) You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be paid inmonthly installments over 25 years at 3.9% compounded monthly. a) What is the monthly payment?b) What is the outstanding balance after making the 100the payment?c) What is the equity after making the 100the payment?d) How much of the 100the payment will go to the principal and how much to interest?e) How much interest will be paid over the entire length of the loan? TVM SOLVER
- Suppose you are 35 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $50 comma 000 per yeardash forever! How much would you need to deposit each month to do this? Assume a constant APR of 7% and that the compounding and payment periods are the same.You decide to buy a house costing $5,000,000. You pay $1,000,000 down, and the remainder will be paid in monthly installments over 30 years at 3.5% compounded monthly. What is the monthly payment? What is the outstanding balance after making the 100th payment? What is the equity after making the 100th payment? How much of the 100th payment will go to principal and how much to interest? How much interest will paid over the entire length of the loan?You make $10,000 deposit 1 year from now, $15,000 deposit 3 years from now and $20,000 deposit 5 years from now. You plan to retire 30 years from now. What monthly income you will receive due to these deposits over five years after the retirement? The first payment would be received at the end of the first month after the retirement and the last payment on the month ending the fifth year. The rate of return is 7.14%. Choices: $3,956.71 $9,221.89 $3,235.26 $4,267.06 $5,614.60
- Suppose that you earn $45,600 per year. What is your monthly salary? $ Assume that you deposit 10% of your monthly salary into an investment account with an APR of 4.8% every month for 30 years. We will assume for simplicity that your salary never changes, so you are depositing the same amount every month for 30 years. What will the balance of your investment account be after 30 years? Round your answer to the nearest cent. The balance of the account is $ How much of the investment account balance is interest? The amount of interest in the account is $You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annnually on the account. How many years will it take to reach your goal?Suppose your opportunity cost (interest rate/year) is 11% compounded annually. How much must you deposit in an account today if you want to pay yourself $230 at the end of each of the next 15 years? How much must you deposit if you want to pay yourself $230 at the beginning of each of the next 15 years?